If the infliction of losses on small depositors has a purpose, it’s probably to reassure the Russians that they are not being discriminated against. Yes, I may have thrown up a little in my mouth typing that.

There is, by the way, a local bank holiday Monday, although on Twitter I already am seeing reports of queues forming in front of banks in Cyprus and the “drying up” of ATMs.

Latvia has long been a destination of choice for Russian deposits of dubious origin. This has nothing to do with Cyprus and everything to do with weak banking regulations, proximity to Russia, a large Russian community, deferential regulators and corrupt politicians.

Latvia’s banking sector is far from safe, however, as two of its largest banks — both with strong ties to Russia — have collapsed under suspicious circumstances.